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Ford Motors after the First World War

Ford Motor Company started to lose its dominance in the automotive market a few years after the First World War, particularly when Edsel Ford was charged with being his father’s successor. The company’s gradual decline was caused by its continuous use of the personalized management mechanism, that was starting to become obsolete, as-well as the company’s neglect of consumer demands for more improved vehicles.

The company’s sales were further worsened by the expansion of some of its closest competitors’ market share. General Motors and Chrysler were able to grab a significant share of the market from Ford by producing high-quality vehicles and providing credit opportunities to their customers. However, Ford was able to recover from its previous loses by providing similar opportunities to its customers. In addition to this, Ford’s stoppage of the production of the Model T and the introduction of the redesigned version of the Model A had placed the company back on track.

Ford’s operation expanded into the luxury market division, when the company acquired the Lincoln Motor Company on February 2, 1922. This was followed by the company’s ventures on financing the cultivation of rubber in Brazil in 1928. The rubber cultivated would be used in producing synthetic rubber for use on Ford vehicles. However, this venture failed and only caused the company to spend millions of funds.

The company’s operation further expanded in 1938, when the Mercury division was established. This division would handle the mid-priced automotive market’s demand for vehicles. Unfortunately, all of these expansion efforts were halted by the “Great Depression.”

The economic crisis and the collapse of the automotive market in the US, caused by the Great Depression, left some scars on Ford Motor Company’s image. In order to stay afloat, the company had to reduce its operation and implement mass lay-offs. As a result, a lot of Ford workers had lost their jobs.

As economic conditions worsened, workers who lost their jobs formed a series of strikes to demand greater support from the company. However, the friction between the protesters, and the police erupted into violence. The police used teargas and water cannons to disperse the crowd, but the protesters responded by throwing rocks. The violence escalated and this forced the police and the company’s security to fire live bullets. As the battle ended, 9 individuals were killed and 60 others were seriously injured. Due to this, it took a few more years before Ford Motor Company was able to stabilize its vehicle production.